New home closings in the San Francisco, CA market increased year-over-year in February, and the market seemed to be hinting at strengthening with a percentage gain more robust than January 2016. New home closings saw a boost of 44.8% from the year earlier to 378. This was after the housing market saw a 24.4% climb year-over-year in January.
A total of 4,134 new homes were sold during the 12 months that ended in February, up from 4,017 for the year that ended in January.
As a percentage of overall housing closings, new home closings made up 13.1%. This is an increase on a percentage basis, as new home closings were 8.9% of total closings a year ago. Following a year-over-year increase in January, closings of new and existing homes fell year-over-year in February.
Pricing and Mortgage Trends
In February, the average price of newly sold homes jumped year-over-year to $1,007,734.00 per unit, a 13.0% lift. This rise is smaller than the 29.1% boost in January year-over-year.
Average mortgage size on new homes increased year-over-year along with new home prices. It climbed to $698,512 in February, a 12.9% hike. In January 2016, average mortgage size on newly sold homes saw a 19.9% boost year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings jumped from 37.9% of all closings in February 2015 to 41.3% of closings in February 2016. Conversely, the share belonging to single-family homes declined to 58.7% of closings from 62.1% of closings.
There was a 29.9% decline year-over-year in the average unit size of newly sold homes to 1,541 square feet in February 2016. This fall was opposite the price bump, a pattern also seen in January 2016 when the average size of newly sold homes sank 56.5% to 1,016 square feet. The average size of newly sold homes moved from 2,334 square feet in January 2015 to 1,016 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 12.7% of existing home closings, below 13.4% a year earlier. The percentage of existing home closings involving foreclosures went from 6.1% in February 2015 to 5.3% in February 2016 and REO closings as a percentage of existing home closings stayed level at 7.4%.